Zurich launches two new individual pension trusts

The two-year Pensions Discretionary trust forces benefits to be paid within two years of death, resulting in no IHT liability, whilst the 80-year Pensions Discretionary trust is suitable when it may not be appropriate to pay out benefits within two years of the member's death, such as when it is prudent to avoid the death benefits subject to IHT on the subsequent death of the spouse or civil partner. Though the latter option may incur an IHT liability, the lump sum can then be retained and invested inside the trust for up to 80 years, and allows the spouse access to the benefits if requi...